Farm Credit System (FCS)
What is the Farm Credit System (FCS)?
The Farm Credit System (FCS) is a cross country lending network which spends significant time in serving the agricultural community. It is comprised of cooperative banks and associations who give credit to people and organizations all through the United States. The FCS helps the rural community and organizations of assorted types and sizes, going from small family farms to corporations with global operations.
How the Farm Credit System (FCS) Works
The FCS comprises of 72 independent and customer-owned financial institutions. These institutions give financing and related services to U.S. farmers, farmers, agribusinesses, commercial fishers, nursery administrators, and farmer-owned cooperatives. The Farm Credit System likewise aids loans to rural home purchasers and infrastructure suppliers. The Farm Credit System is an essential source of funding for the agribusiness industry which is viewed as high-risk by traditional lenders. Every one of the part institutions of the FCS has management through a customer picked Board of Directors.
The FCS makes loans for different purposes, including:
- Agricultural processing and marketing activities
- Rural housing drives
- Farm-related organizations
- Construction and improvement of rural utilities
- Financing and advancing the global exports of products
- Purchasing land to operate farms
- Purchasing equipment and building the facilities important to the agriculture industry
The Farm Credit System assists the agriculture industry with resources including financial products, for example, credit life insurance, crop insurance, accounting devices and cash management services. The organization additionally gives access to leasing programs that permit customers to purchase and finance vehicles, farm equipment, and different supplies.
The FCS gives access to fundamentally required credit in rural regions where national and regional banks normally don't have a presence. That, thusly, helps support rural networks and keeps them solid and flourishing. The organization's mission today likewise centers around guaranteeing that American agriculture stays competitive in global markets.
The Farm Credit System doesn't run off of government funding or tax dollars. The FCS raises funds through the sale of debt securities on the market. Loan proceeds help to purchase and keep up with the products and supplies required by individuals the FCS serves.
History of the Farm Credit System
The organization's foundations trace back over 100 years. It originated when Congress made the FCS in 1916 through legislation laying out the Federal Land Bank System (FLB). The group issued its most memorable loan under a year after the fact. The system expanded during the Great Depression and received credit for assisting with saving numerous American farms during that period.
The Farm Credit Act of 1953 laid out the FCA as one of the agencies that falls under the executive branch, setting it on a course towards independence. The federal government initially funded the FCS to guarantee American agriculture had a reliable source of credit. It is presently self-funding and owned by its part borrowers. The organization's size and scope permit part borrowers to approach credit sources and attractive borrowing terms that could not in any case be accessible to them, particularly on account of small farms or those with limited resources.
Features
- The FCS comprises of 72 independent and customer-owned financial institutions.
- The Farm Credit System is a pivotal source of funding for the agribusiness industry which is viewed as high-risk by traditional lenders.
- The FCS is comprised of cooperative banks and associations who give credit to people and organizations all through the United States.
